Abbott Reaches $670m Settlement Over Premature-Baby Formulas

Abbott Laboratories, a pharmaceutical and specialised-nutrition company, has reached an estimated $670m settlement covering a substantial portion of litigation in the United States over products used to feed premature and low-birthweight babies. The agreement concerns specialised formulas and milk-based fortifiers, including Similac Special Care.

The cases were brought by families whose children had been treated with the products. Their claims alleged that Abbott had not adequately warned about the risk of necrotising enterocolitis, a serious gastrointestinal disease that can cause intestinal inflammation and tissue death in newborns.

NEC mainly affects premature infants receiving care in neonatal intensive-care units. According to the account, the plaintiffs argued that nutrition products made with cow’s milk increased the likelihood of NEC compared with exclusive feeding with human breast milk or donated milk-bank supplies.

The settlement is intended to resolve hundreds of claims. It follows preliminary adverse rulings by local courts, which had contributed to legal uncertainty surrounding Abbott and volatility in its share price, according to the report.

Abbott reiterated the safety of its nutritional products while agreeing to establish the compensation arrangement. The company said the products had been essential for decades in providing the calories and protein required by premature infants who did not have enough access to breast milk.

The litigation is part of wider disputes involving specialised infant nutrition. Mead Johnson, which is owned by Reckitt, has faced parallel claims, while the Abbott cases have drawn attention to the clinical research, labelling and warnings associated with milk-based nutrition for high-risk newborns. The report identified the settlement as relevant to the regulation and liability of specialised medical foods.